The U.S. tax services market is facing pressure from both a shrinking professional workforce and rising client demand. Bureau of Labor Statistics data shows that more than 300,000 accountants and auditors have left the labor force over the past two years, while a Sam's List survey found that 36% of people seeking personal tax help want to replace their current provider. For high-income households, the difference between filing a return and receiving year-round tax planning can affect investment income, retirement-account decisions and the final tax bill.
When an accountant contacts a client only during filing season, the work often centers on documenting income and expenses that have already occurred rather than discussing the tax consequences of major financial decisions in advance. A shortage of tax professionals, combined with business models built around serving large client volumes, can also make ongoing advice difficult to provide.
Filing Services and Year-Round Planning
Tax strategist and enrolled tax agent David A. Perez says clients should not assume that purchasing tax-return preparation includes continuing financial advice. If the last conversation with a provider was a March filing appointment, the client may not receive a timely review before making a decision that affects the tax return.
Perez is also chief executive of advisory firm Tax Maverick AI. He says firms that depend on a large client base to generate revenue may have limited time for detailed planning. At a fee of $1,000 per client, a provider would need 300 clients to generate $300,000 in revenue before operating costs. During the traditional spring filing season, many tax professionals work 50 to 80 hours a week while handling a growing client base with small teams.
The workload is reflected in clients' willingness to change providers. Sam's List found that about one in three taxpayers who use a professional to prepare their return is looking for an alternative. Some 16% are dissatisfied with their current service, while another 10% want a lower-priced provider. The shortage of certified public accountants, along with more people seeking professional help for the first time, has also created differences in how clients assess service quality. Sam's List co-founder Kimberly Green says many people are hiring a tax professional for the first time and do not yet have a clear benchmark for evaluating the service.
Three Ways to Define the Service
Americans hire a tax professional for the first time at an average age of about 29, often with the expectation that the professional will increase their annual refund. In practice, the scope of work depends on whether the client is buying return preparation or planning that includes support before major financial decisions.
Perez identifies three indicators that can help distinguish the two services. The first is the timing of communication. If a professional appears only during filing season, the engagement is more likely to focus on preparing the return. Planning requires ongoing discussions before events such as a pay increase, a stock sale, a real-estate purchase or the launch of a business.
The second is how quarterly estimated taxes are calculated. Basic filing services commonly use the prior year's tax bill to set estimated payments, helping the taxpayer meet the Internal Revenue Service's safe-harbor rules and avoid an underpayment penalty. Tax planning instead forecasts changes in current-year income and adjusts estimated payments as circumstances change.
The third is whether the provider offers actionable recommendations. Return preparation mainly explains how much tax is due. Planning may also assess changes to a business entity, optimize retirement-account contributions, or time capital expenditures while estimating the resulting tax effects.
Once taxpayers understand the scope of the engagement, they can decide whether to add year-round planning or change providers. Fees for preparing an individual return range from about $200 to more than $2,500. Additional planning raises the cost, meaning the service is not affordable for every taxpayer.
Tax Decisions for Higher-Income Households
For households earning $250,000 to $500,000 or more a year, as well as people approaching or already in retirement, a lack of advance planning can make year-end tax decisions more complicated. Several rules may be relevant, although the effect depends on each taxpayer's income, assets and circumstances.
Under the net investment income tax, investment income may be subject to an additional 3.8% tax when a single taxpayer's modified adjusted gross income exceeds $200,000 or a married couple's income exceeds $250,000 when filing jointly. The tax can apply to capital gains, dividends and rental income. The timing of an asset sale can therefore affect the year's income mix and tax calculation.
The alternative minimum tax can also affect higher-income taxpayers. Exercising incentive stock options or claiming a large deduction for state and local taxes can change the calculation of taxable income and increase the tax bill. When a traditional individual retirement account is converted to a Roth IRA, failing to assess the conversion against the taxpayer's overall tax bracket can increase taxable income for the year and potentially result in a higher federal marginal rate or additional Medicare premiums.
These multi-year decisions may help explain why some clients set aside larger budgets for advisory services. Sam's List says two-thirds of clients want to keep their accounting-services budget below $5,000, while nearly one in five plans to spend at least $20,000 a year. Clients with larger budgets generally seek more consistent follow-up to coordinate multiple income sources and tax decisions across several years.
Checks Before the End of 2026
Taxpayers who want to move from after-the-fact filing to advance planning should schedule a full planning meeting early rather than relying only on a short email exchange, Perez says. They can ask about the projected tax bill, available strategies, expected fees and the deadlines for taking action.
Some steps must be completed by December 31, including adjusting withholding and reviewing required minimum distribution arrangements. Other actions can continue after year-end, including certain IRA contributions and fourth-quarter estimated tax payments for the 2026 tax year, which are generally due on January 15 of the following year.
Anyone planning to establish a new tax-planning relationship from 2027 should clarify the scope of services, fees and communication schedule well before filing season. A completed tax return records financial activity that has already taken place; for households that need planning, the relevant discussions should occur before decisions are made during the year.